IFR Asia - October 14, 2017

COUNTRY REPORT HONG KONG

› CHINA POWER PLANS RIGHTS ISSUE

CHINA POWER INTERNATIONAL DEVELOPMENT plans
to raise about HK$2bn from a rights issue
to fund the acquisition of clean-energy
assets from state-owned parent State Power
Investment Corporation.
The company plans to sell about 2.45bn
shares on a 1-or-3 basis. The rights price has
not been set as yet.
CPI Holdings, a substantial shareholder of
the company, together with CPDL, a wholly
owned subsidiary of CPI, hold a combined
55.6% stake in the company and have
committed to take up their entitlements.
China Power announced on Monday
that it would buy natural gas, hydro, solar
and wind power assets from its parent for
Rmb4.97bn. It will finance the acquisition
through internal resources in addition to
the rights issue.

HONG KONG

SYNDICATED LOANS

› MINSHENG FL BACK FOR MORE

MINSHENG FINANCIAL LEASING is coming back for
a US$164m pre-delivery payment facility
after obtaining an increased US$335m
three-year bullet loan in April.
Natixis, the sole mandated lead arranger
and bookrunner, will launch the loan into
limited syndication.
The facility is expected to have different
tenors, with the longest close to three
years. The borrower will be a special-
purpose vehicle.
The US$335m loan was increased from
US$200m on an overwhelming response in
general syndication.
That loan paid a top-level all-in pricing
of 175bp, based on an interest margin of
160bp over Libor.
Credit Suisse Singapore, E.Sun Commercial
Bank and Standard Chartered were MLABs.

China Minsheng Banking and Tianjin

Port Free Trade Zone Investment

co-founded Minsheng Financial Leasing in

2008.

› SHUI ON CENTRE CLOSES REFI

SHUI ON CENTRE signed on October 3 a

HK$4.9bn (US$628m) five-year term loan

with eight lenders.

Standard Chartered was the sole mandated

lead arranger, bookrunner and underwriter

on the loan, which offers a top-level all-in

pricing of 160bp over Hibor and has an

average life of 4.83 years.

Bank of Communications Hong Kong branch

and Nanyang Commercial Bank joined as

MLAs, while five other lenders came in as

lead arrangers.

The Shui On Centre, a 35-storey office

tower in Hong Kong’s Wan Chai area,

served as security.

Funds from the facility are mainly to

refinance a HK$3.4bn five-year club signed

in April 2015 at an all-in pricing of 280bp

over Hibor.

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› VICTORY CITY RETURNS FOR REFI

Hong Kong-listed VICTORY CITY INTERNATIONAL

HOLDINGS is back for a HK$2.6bn-equivalent

term loan to refinance a HK$2.89bn-

equivalent facility from nearly two years

ago.

The knitted fabric maker has named

Cathay United Bank, Hong Kong, CTBC Bank,

First Commercial Bank, Hong Kong, Hang Seng

Bank and HSBC as mandated lead arrangers

and bookrunners on the dual-currency

financing, paying an interest margin of

168bp over Hibor or Libor over an average

life of 3.35 years.

Banks can join for an all-in pricing of

200.83bp and the MLA title, based on

a 110bp upfront fee, with HK$200m-

equivalent or more, an all-in of 197.85bp

and the lead arranger title, based on a

100bp upfront fee, with HK$100m–$199-

equivalent, or an all-in of 193.37bp and the

arranger title, based on a 85bp upfront fee,

for HK$50m–$99-equivalent.

Funds will also be used for general

corporate purposes.

A site visit is scheduled for October 17 to

a factory in Jiangmen city’s Xinhui District,

Guangdong province. Commitments are

due on November 6 with signing slated for

the week of November 17.

Victory City signed the HK$2.888bn-

equivalent 3.5-year transferable term loan

in December 2015 with China Citic Bank

International, CTBC, First Commercial

Bank, Hong Kong, Fubon Financial

Holding, Hang Seng. HSBC and Rabobank,

Hong Kong, joined as MLABs. Victory

City International Holdings, Best Linkage

(Macao Commercial Offshore), Victory City

Overseas and Global Honour Investments

were the guarantors on that loan, split into

a HK$2.346bn tranche A and a US$70m

tranche B. The facility offered a top-level

all-in of 251bp, based on a margin of 217bp

over Hibor for tranche A and 217bp over

Libor for tranche B. The average life was

2.925 years.

EQUITY CAPITAL MARKETS

› DUO SELL DOWN RUSAL STAKES

Russian tycoons Mikhail Prokhorov and

Viktor Vekselberg have raised a total of

HK$2.46bn (US$315m) from sell-downs of

their interests in dual-listed RUSAL.

The Russian aluminium producer is listed

in Hong Kong and Moscow.

The offer of 456m shares, or about 3%

of Rusal’s equity capital, was priced at

the bottom of an indicative price range

of HK$5.40–$5.55 each. The final price

represents a discount of 7.5% to the pre-deal

spot.

The deal was well covered with about

70 investors participating. Allocation was

very concentrated as the top 10 investors

took about two-thirds of the shares. There

was mixed demand from international and

Russian investors.

Prokhorov sold 0.7% in Rusal and

Vekselberg sold 2.3%, reducing their

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